BaFin product intervention regarding futures
The CSSF would like to draw the attention of supervised entities to the following product intervention measure regarding futures, taken by Germany’s “Federal Financial Supervisory Authority” (“BaFin”) and published on its website on 30 September 2022:
The measure is based on Article 42 “Product intervention by competent authorities” of Regulation (EU) No 600/2014 of the European parliament and of the Council of 15 May 2014 on markets in financial instruments (“MiFIR”).
As a consequence of this measure, entities supervised by the CSSF are prohibited from marketing, distributing and selling futures to retail clients domiciled in Germany except if “additional payment obligations” have been contractually excluded. Transactions for hedging purposes or to close out open futures positions are not subject to this prohibition.
Reference is made to the General Administrative Act published by BaFin for the precise scope of the restriction.
The restriction is effective from 1 January 2023.